PM Modi’s Stand-Up India scheme: Nearly 30% jump in loans sanctioned to women, SC/ST MSMEs in 2021

PM Modi’s Stand-Up India scheme: Nearly 30% jump in loans sanctioned to women, SC/ST MSMEs in 2021

Credit and Finance for MSMEs: Prime Minister Narendra Modi’s scheme to support entrepreneurship among women and scheduled caste & scheduled tribe entrepreneurs, Stand-Up India has grown 29 per cent in 2021 in the number of loans sanctioned and the amount involved — indicating growth in credit requirement for setting up greenfield enterprises despite the second wave of the pandemic. From 98,454 loan applications amounting to Rs 22,136.21 sanctioned crore as of December 15, 2020, the applications jumped to 1,27,440 worth Rs 28,700.36 crore as of December 26, 2021, at the time of filing this report, official data showed.

Since its launch in April 2016, the sanctioned applications base grew to 55,342 applications as of March 7, 2018, to 91,319 applications as of March 10, 2020, to more than 1,14,322 applications involving Rs 25,586 crore as of March 23, 2021, according to the data from the Finance Ministry. The latest data from the scheme’s portal showed that the total number of applications received had increased 27 per cent to 1.46 lakh amount to Rs 34,628.36 crore in 2021 from more than 1.15 lakh applications involving Rs 27,467.04 crore last year. 

The Stand-Up India scheme enables bank credit from Rs 10 lakh to Rs 1 crore to at least one SC/ST borrower and at least one woman borrower per bank branch of scheduled commercial banks for setting up their greenfield venture in the manufacturing, services, or trading sector and activities allied to agriculture. The lenders engaged with the scheme has also grown from 305 last year to 369 this year connected with over 1.53 lakh bank branches.

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Greenfield unit here is referred to the first-time venture of the beneficiary. In the case of non-individual enterprises, 51 per cent of the shareholding and controlling stake would be held by either SC/ST and/or women entrepreneurs in the business. Importantly, borrowers in default to any bank or financial institution would not be eligible for the scheme. Finance Minister Nirmala Sitharaman in her FY20 budget speech had announced the scheme’s extension to 2025. 

The majority of beneficiaries of the scheme have been women entrepreneurs. From FY20 till November 23, 2021, out of 35,924 sanctioned applications, 28,299 were to women borrowers amounting to Rs 6,859 crore. SC entrepreneurs were sanctioned 5,398 applications involving Rs 1,174 crore while ST entrepreneurs were sanctioned 2,227 applications worth Rs 481.33 crore.

Check the source here –Source, Financial Express.